By Shitij Gandhi SMC Global Securities Ltd
Since the beginning of the April series, we have been witnessing short covering by the traders which took Nifty above 10,400 levels once again on Wednesday.
However, on technical charts, 10,400-10,450 should act as crucial resistance for the index and moving forward the range of 10,300-10,500 levels will remain crucial as indicated by option open interest concentration.
Post expiry, we have seen some short covering in Index futures & stock futures but on the whole overall data still remains negative.
Though, if Nifty manages to move above the 10,500 mark, then we can further see short covering towards 10,650 levels as well. On the downside, 10,250-10,200 should act as key support levels.
KEI Industries has been consolidating in the range of Rs 350-400 for more than five months with consistent buying at lower levels. Also, we had consolidation breakout last week in prices as the stock surpassed the Rs 420 level along with marginally higher volumes and positive divergence on secondary indicators like RSI and stochastic.
Traders can accumulate the stock in a range of Rs 425-435 levels for the target of Rs 481 and a stop loss below Rs 395.
Disclaimer: The author is Senior Research Analyst, SMC Global Securities Ltd. The views and investment tips expressed by investment experts on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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